On January 1, 2024, Neighborhood Credit Union (NCU) issued 6%, 20-year bonds payable with face value of $700,000. The bonds pay interest on June 30 and December 31. Read the requirements Requirement 1. If the market interest rate is 5% when NCU issues its bonds, will the bonds be priced at face value, at a premium, or at a discount? Explain. in this market, so investors will pay They are The 6% bonds issued when the market interest rate is 5% will be priced at Requirement 2. If the market interest rate is 8% when NCU issues its bonds, will the bonds be priced at face value, at a premium, or at a discount? Explain. in this market, so investors will pay The 6% bonds issued when the market interest rate is 8% will be priced at Requirement 3. The issue price of the bonds is 99. Journalize the bond transactions. (Assume bonds payable are amortized using the straight-line amortization method. Record debits first, ther credits. Select explanations on the last line of the journal entry. Round your answers to the nearest whole dollar.) to acquire them. They are a. Journalize the issuance of the bonds on January 1, 2024. Dabis Credit to acquire them.

On January 1, 2024, Neighborhood Credit Union (NCU) issued 6%, 20-year bonds payable with face value of $700,000. The bonds pay interest on June 30 and December 31. Read the requirements Requirement 1. If the market interest rate is 5% when NCU issues its bonds, will the bonds be priced at face value, at a premium, or at a discount? Explain. in this market, so investors will pay They are The 6% bonds issued when the market interest rate is 5% will be priced at Requirement 2. If the market interest rate is 8% when NCU issues its bonds, will the bonds be priced at face value, at a premium, or at a discount? Explain. in this market, so investors will pay The 6% bonds issued when the market interest rate is 8% will be priced at Requirement 3. The issue price of the bonds is 99. Journalize the bond transactions. (Assume bonds payable are amortized using the straight-line amortization method. Record debits first, ther credits. Select explanations on the last line of the journal entry. Round your answers to the nearest whole dollar.) to acquire them. They are a. Journalize the issuance of the bonds on January 1, 2024. Dabis Credit to acquire them.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Click here to view the factor table. https://education.wiley.com/content/Kieso_Intermediate_Accounting_17e/media/simulations/interest_rate_tables.pdf
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You wish to purchase some 25-year - maturity strip bonds with the $11,874 in cash you now have. If these strip bonds are currently priced to yield 2.125% compounded semiannually, how many $1000 denomination bonds can you purchase? a 5 bonds b 8 bonds c 6 bonds d 14 bonds e 7 bonds
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